AN
ACT Relating to relief for the equine industry by amending the parimutuel tax
on horse racing to provide additional support for licensed racing associations,
the state fair account, the state trade fair account, and the Washington horse
racing commission, and modifying the membership thereof; amending RCW
15.04.090, 67.16.012, 67.16.100, 67.16.105, and 67.16.170; adding a new section
to chapter 15.76 RCW; adding a new section to chapter 43.31 RCW; adding new
sections to chapter 43.131 RCW; adding new sections to chapter 67.16 RCW;
creating a new section; providing a contingent effective date; and declaring an
emergency.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
15.04.090 and 1961 c 11 s 15.04.090 are each amended to read as follows:
The
director of agriculture may, at his discretion, for a period of not to exceed
ten years, lease state lands which are now or may hereafter be, under his
direction and control, the retention of which he deems unnecessary for present
state purposes or needs, to any nonprofit group or organization having
educational, agricultural or youth development purposes. Such leases shall be
upon such terms as the director deems beneficial to the state. All rental
funds received by the director under the provisions of this section shall be
deposited in the (("fair fund" provided in RCW 67.16.100)) fair
fund created under section 2 of this act.
NEW
SECTION. Sec. 2. A
new section is added to chapter 15.76 RCW to read as follows:
The
fair fund is created in the custody of the state treasury. All moneys received
by the department of agriculture for the purposes of this fund and from RCW
67.16.105(4) shall be deposited into the fund. Expenditures from the fund may
be used only for assisting fairs in the manner provided in this chapter. Only
the director of agriculture or the director's designee may authorize
expenditures from the fund. The fund is subject to allotment procedures under
chapter 43.88 RCW, but no appropriation is required for expenditures.
NEW
SECTION. Sec. 3. A
new section is added to chapter 43.31 RCW to read as follows:
The
state trade fair fund is created in the custody of the state treasury. All moneys
received by the department of community, trade, and economic development for
the purposes of this fund shall be deposited into the fund. Expenditures from
the fund may be used only for the purpose of assisting state trade fairs. Only
the director of community, trade, and economic development or the director's
designee may authorize expenditures from the fund. The fund is subject to
allotment procedures under chapter 43.88 RCW, but no appropriation is required
for expenditures.
Sec.
4. RCW
67.16.012 and 1987 c 453 s 2 are each amended to read as follows:
There
is hereby created the Washington horse racing commission, to consist of ((three))
five commissioners, appointed by the governor and confirmed by the
senate. The commissioners shall be citizens, residents, and qualified electors
of the state of Washington, one of whom shall be a breeder of race horses and
shall be of at least one year's standing. The terms of the members shall be
six years. Each member shall hold office until his or her successor is
appointed and qualified. Vacancies in the office of commissioner shall be
filled by appointment to be made by the governor for the unexpired term. Any
commissioner may be removed at any time at the pleasure of the governor.
Before entering upon the duties of his or her office, each commissioner shall
enter into a surety company bond, to be approved by the governor and attorney
general, payable to the state of Washington, in the penal sum of five thousand
dollars, conditioned upon the faithful performance of his or her duties and the
correct accounting and payment of all sums received and coming within his or
her control under this chapter, and in addition thereto each commissioner shall
take and subscribe to an oath of office of the same form as that prescribed by
law for elective state officers.
Sec.
5. RCW
67.16.100 and 1995 c 399 s 166 are each amended to read as follows:
(1)
All sums paid to the commission under this chapter, including those sums
collected for license fees and excluding those sums collected under RCW
67.16.102((,)) and 67.16.105(3)((, and 67.16.105(4))),
shall be disposed of by the commission as follows: (((a) Fifty)) One
hundred percent thereof shall be retained by the commission for the payment
of the salaries of its members, secretary, clerical, office, and other help and
all expenses incurred in carrying out the provisions of this chapter. No
salary, wages, expenses, or compensation of any kind shall be paid by the state
in connection with the work of the commission.
(((b)
One percent shall, on the next business day following the receipt thereof, be
paid to the state treasurer to be deposited in the general fund.
(c)
Three percent shall, on the next business day following the receipt thereof, be
paid to the state treasurer, who is hereby made ex officio treasurer of a fund
to be known as the "state trade fair fund" which shall be maintained
as a separate and independent fund, and made available to the director of
community, trade, and economic development for the sole purpose of assisting
state trade fairs.
(d)
Forty-six percent shall be paid to the state treasurer, who is hereby made ex
officio treasurer of a fund to be known as the "fair fund," which
shall be maintained as a separate and independent fund outside of the state
treasury, and made available to the director of agriculture for the sole
purpose of assisting fairs in the manner provided in Title 15 RCW.))
(2)
Any moneys collected or paid to the commission under the terms of this chapter
and not expended at the close of the fiscal biennium shall be paid to the state
treasurer and be placed in the ((general)) fair fund created
in section 2 of this act. The commission may, with the approval of the
office of financial management, retain any sum required for working capital.
Sec.
6. RCW
67.16.105 and 1997 c 87 s 3 are each amended to read as follows:
(1)
Licensees of race meets that are nonprofit in nature((,)) and are
of ten days or less((, and have an average daily handle of one hundred
twenty thousand dollars or less shall withhold and pay to the commission daily
for each authorized day of racing one-half percent of the daily gross receipts
from all parimutuel machines at each race meet)) shall be exempt from
payment of a parimutuel tax.
(2)
Licensees that do not fall under subsection (1) of this section shall withhold
and pay to the commission daily for each authorized day of parimutuel
wagering the following applicable percentage of all daily gross receipts
from its in-state parimutuel machines:
(a)
If the ((daily)) gross receipts of all its in-state parimutuel machines
are more than ((two hundred fifty thousand)) fifty million
dollars in the previous calendar year, the licensee shall withhold and
pay to the commission daily ((two and one-half)) 1.30 percent of
the daily gross receipts; and
(b)
If the ((daily)) gross receipts of all its in-state parimutuel machines
are ((two hundred fifty thousand)) fifty million dollars or less in
the previous calendar year, the licensee shall withhold and pay to the
commission daily ((one)) 0.52 percent of the daily gross
receipts.
(3)
In addition to those amounts in subsection((s (1) and)) (2) of this
section, a licensee shall forward one-tenth of one percent of the daily gross
receipts of all its in-state parimutuel machines to the commission for payment
to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1)
of this section, but said percentage shall not be charged against the
licensee. Payments to nonprofit race meets under this subsection shall be
distributed on a pro rata per-race-day basis and used only for purses at race
tracks that have been operating under RCW 67.16.130 and subsection (1) of this
section for the five consecutive years immediately preceding the year of
payment. The commission shall transfer funds generated under subsection (2)
of this section equal to the difference between funds collected under this
subsection (3) in a calendar year and three hundred thousand dollars, and
distribute that amount under this subsection (3).
(4)
Beginning July 1, 1999, at the conclusion of each authorized race meet, the
commission shall calculate the mathematical average daily gross receipts of
parimutuel wagering that is conducted only at the physical location of the live
race meet at those race meets of licensees with gross receipts of all their
in-state parimutuel machines of more than fifty million dollars. Such
calculation shall include only the gross parimutuel receipts from wagering
occurring on live racing dates, including live racing receipts and receipts
derived from one simulcast race card that is conducted only at the physical
location of the live racing meet, which, for the purposes of this subsection,
is "the handle." If the calculation exceeds eight hundred eighty-six
thousand dollars, the licensee shall within ten days of receipt of written
notification by the commission forward to the commission a sum equal to the
product obtained by multiplying 0.6 percent by the handle. Sums collected by
the commission under this subsection shall be forwarded on the next business
day following receipt thereof to the state treasurer to be deposited in the
fair fund created in section 2 of this act.
Sec.
7. RCW
67.16.170 and 1991 c 270 s 8 are each amended to read as follows:
(1)
Licensees of race meets that are nonprofit in nature((,)) and are
of ten days or less((, and have an average daily handle of one hundred
twenty thousand dollars or less)) may retain daily for each authorized day
of racing ((fourteen and one-half)) fifteen percent of daily
gross receipts of all parimutuel machines at each race meet.
(2)
Licensees of race meets that do not fall under subsection (1) of this section
may retain daily for each authorized day of ((racing)) parimutuel
wagering the following percentages from the daily gross receipts of all its
in-state parimutuel machines ((at each race meet)):
(a)
If the daily gross receipts of all its in-state parimutuel machines are
more than ((two hundred fifty thousand)) fifty million dollars in
the previous calendar year, the licensee may retain daily ((twelve and
one-half)) 13.70 percent of the daily gross receipts; and
(b)
If the daily gross receipts of all its in-state parimutuel machines are
((two hundred fifty thousand)) fifty million dollars or less in
the previous calendar year, the licensee may retain daily ((fourteen))
14.48 percent of the daily gross receipts.
NEW
SECTION. Sec. 8. A
new section is added to chapter 43.131 RCW to read as follows:
The
reduction in parimutuel taxes and redistributions under sections 5 through 7,
chapter . . ., Laws of 1998 (sections 5 through 7 of this act) shall
be reviewed under this chapter before June 30, 2001.
NEW
SECTION. Sec. 9. A
new section is added to chapter 43.131 RCW to read as follows:
The
following acts or parts of acts, as now existing or hereafter amended, are each
repealed, effective June 30, 2001:
(1) RCW
67.16.100 and 1998 c ... s 5 (section 5 of this act), 1995 c 399 s 166, &
1991 c 270 s 4;
(2) RCW
67.16.105 and 1998 c ... s 6 (section 6 of this act), 1997 c 87 s 3, 1995 c 173
s 2, 1994 c 159 s 2, 1993 c 170 s 2, 1991 c 270 s 6, 1987 c 347 s 4, 1985 c 146
s 7, 1982 c 32 s 3, & 1979 c 31 s 6; and
(3) RCW
67.16.170 and 1998 c ... s 7 (section 7 of this act), 1991 c 270 s 8, 1987 c
347 s 2, 1985 c 146 s 9, 1983 c 228 s 1, & 1979 c 31 s 5.
NEW
SECTION. Sec. 10. (1)
All sums paid to the commission under this chapter, including those sums collected
for license fees and excluding those sums collected under RCW 67.16.102 and
67.16.105(3), shall be disposed of by the commission as follows:
(a)
Fifty percent thereof shall be retained by the commission for the payment of
the salaries of its members, secretary, clerical, office, and other help and
all expenses incurred in carrying out the provisions of this chapter. No
salary, wages, expenses, or compensation of any kind shall be paid by the state
in connection with the work of the commission.
(b)
One percent shall, on the next business day following the receipt thereof, be
paid to the state treasurer to be deposited in the general fund.
(c)
Three percent shall, on the next business day following the receipt thereof, be
paid to the state treasurer to be deposited in the state trade fair fund
created in section 3 of this act.
(d)
Forty-six percent shall, on the next business day following the receipt
thereof, be paid to the state treasurer to be deposited in the fair fund
created in section 2 of this act.
(2)
Any moneys collected or paid to the commission under the terms of this chapter
and not expended at the close of the fiscal biennium shall be paid to the state
treasurer and be placed in the general fund. The commission may, with the
approval of the office of financial management, retain any sum required for
working capital.
NEW
SECTION. Sec. 11. (1)
Licensees of race meets that are nonprofit in nature and are of ten days or
less shall withhold and pay to the commission daily for each authorized day of
parimutuel wagering one-half percent of the gross receipts of its parimutuel
machines at each race meet.
(2)
Licensees that do not fall under subsection (1) of this section shall withhold
and pay to the commission daily for each authorized day of parimutuel wagering
the following applicable percentage of all daily gross receipts from its
in-state parimutuel machines:
(a)
If the gross receipts of all its in-state parimutuel machines are more than
fifty million dollars in the previous calendar year, the licensee shall
withhold and pay to the commission daily two and one-half percent of the daily
gross receipts; and
(b)
If the gross receipts of all its in-state parimutuel machines are fifty million
dollars or less in the previous calendar year, the licensee shall withhold and
pay to the commission daily one percent of the daily gross receipts.
(3)
In addition to those amounts in subsections (1) and (2) of this section, a
licensee shall forward one-tenth of one percent of the daily gross receipts of
all its in-state parimutuel machines to the commission for payment to those
nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this
section, but said percentage shall not be charged against the licensee.
Payments to nonprofit race meets under this subsection shall be distributed on
a pro rata per-race-day basis and used only for purses at race tracks that have
been operating under RCW 67.16.130 and subsection (1) of this section for the
five consecutive years immediately preceding the year of payment.
NEW
SECTION. Sec. 12. (1)
Licensees of race meets that are nonprofit in nature and are of ten days or
less may retain daily for each authorized day of racing fourteen and one-half
percent of daily gross receipts of all parimutuel machines at each race meet.
(2)
Licensees of race meets that do not fall under subsection (1) of this section
may retain daily for each authorized day of parimutuel wagering the following
percentages from the daily gross receipts of all its in-state parimutuel
machines:
(a)
If the daily gross receipts of all its in-state parimutuel machines are more than
fifty million dollars in the previous calendar year, the licensee may retain
daily twelve and one-half percent of the daily gross receipts; and
(b)
If the daily gross receipts of all its in-state parimutuel machines are fifty
million dollars or less in the previous calendar year, the licensee may retain
daily fourteen percent of the daily gross receipts.
NEW
SECTION. Sec. 13.
Sections 10 through 12 of this act are each added to chapter 67.16 RCW.
NEW
SECTION. Sec. 14. If
any provision of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the provision to
other persons or circumstances is not affected.
NEW
SECTION. Sec. 15. (1)
Sections 1 through 9, and 16 of this act are necessary for the immediate
preservation of the public peace, health, or safety, or support of the state
government and its existing public institutions, and take effect immediately.
(2)
Sections 10 through 12 of this act take effect July 1, 2001, if the repeal of
RCW 67.16.100, 67.16.105, and 67.16.170 under section 9 of this act becomes
effective.
NEW
SECTION. Sec. 16. If
specific funding for the purposes of this act, referencing this act by bill or
chapter number, is not provided by June 30, 1998, in the omnibus appropriations
act, this act is null and void.
